Low precipitation can significantly damage property or impact business operations, resulting in loss of revenue. Our low precipitation coverage provides tailored protection against revenue losses when precipitation is less than a pre-selected trigger.
Using CPC or PRISM precipitation data, a coverage trigger can be set based on a business’s needs and risk exposure. If cumulative rainfall falls below the threshold during the policy period, the insured automatically becomes eligible for a loss payment, helping to cover costs and maintain profitability despite challenges from low precipitation.
Water supply companies that rely on locally sourced rivers and reservoirs to produce drinking water for the surrounding communities are at risk of prolonged drought. When reservoir levels fall due to lack of rainfall, private water supply companies have to pump in water from other sources which is an additional cost for the company. To protect against this potential added cost, private or public water supply companies can purchase parametric insurance that protects against low rainfall.